CUPERTINO, Calif.--(BUSINESS WIRE)--Seagate Technology plc (NASDAQ: STX) (the “Company”) today reported
financial results for the quarter ended March 29, 2013. During the
fiscal third quarter, the Company reported revenue of approximately $3.5
billion, gross margin of 26.9%, net income of $416 million and diluted
earnings per share of $1.13. On a non-GAAP basis, which excludes the net
impact of certain items, Seagate reported gross margin of 27.6%, net
income of $464 million and diluted earnings per share of $1.26.

The Company generated $678 million in operating cash flow, repurchased
three million ordinary shares for approximately $102 million and paid
$379 million for the early redemption of long-term debt. For the first
nine months of the fiscal year, the Company has returned 75% of its
operating cash flow to shareholders in dividends and share redemptions.
Cash, cash equivalents, restricted cash, and short-term investments
totaled approximately $2 billion at the end of the fiscal third quarter.

“Seagate’s operational results this quarter again reflect strong
execution,” said Steve Luczo, Seagate’s chairman, president and chief
executive officer. “The continued advancement of cloud, mobile and open
source computing are trends that are shifting data volumes toward
personal and corporate cloud environments, creating tremendous
opportunities for Seagate’s leading storage technology portfolio.
Looking ahead, our top priorities are focused on the efficiency of our
operations, extending our leadership in storage technology innovation
and returning value to shareholders.”

For a detailed reconciliation of GAAP to non-GAAP results, see
accompanying financial tables.

Seagate has issued a Supplemental Commentary document, which will not be
read during today's call, but is available in the “Investors” section of
seagate.com.

Quarterly Cash Dividend

The Board of Directors has approved a quarterly cash dividend of $0.38
per share, which will be payable on May 29, 2013 to shareholders of
record as of the close of business on May 15, 2013. The payment of any
future quarterly dividends will be at the discretion of the Board and
will be dependent upon Seagate's financial position, results of
operations, available cash, cash flow, capital requirements and other
factors deemed relevant by the Board.

Investor Communications

Seagate management will hold a public webcast today at 2:00 p.m. Pacific
Daylight Time that can be accessed on its Investor Relations website at www.seagate.com/investors.
During today's webcast, the Company will provide an outlook for its
fourth fiscal quarter of 2013, including key underlying assumptions.

Seagate is a world leader in hard disk drives and storage solutions.
Learn more at www.seagate.com.

Cautionary Note Regarding Forward-Looking
Statements

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, each as amended, including, in
particular, statements about our plans, strategies and prospects and
estimates of industry growth for the fiscal quarter ending June 28, 2013
and beyond. These statements identify prospective information and
include words such as “expects,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” “projects” and similar expressions. These
forward-looking statements are based on information available to the
Company as of the date of this press release and are based on
management's current views and assumptions. These forward-looking
statements are conditioned upon and also involve a number of known and
unknown risks, uncertainties, and other factors that could cause actual
results, performance or events to differ materially from those
anticipated by these forward-looking statements. Such risks,
uncertainties, and other factors may be beyond the Company’s controland
may pose a risk to the Company’s operating and financial condition. Such
risks and uncertainties include, but are not limited to:the
uncertainty in global economic conditions, as consumers and businesses
may defer purchases in response to tighter credit and financial news;
the impact of the variable demand and adverse pricing environment for
disk drives, particularly in view of current business and economic
conditions; dependence on the Company’s ability to successfully qualify,
manufacture and sell its disk drive products in increasing volumes on a
cost-effective basis and with acceptable quality, particularly the new
disk drive products with lower cost structures; the impact of
competitive product announcements; possible excess industry supply with
respect to particular disk drive products; and the Company’s ability to
achieve projected cost savings in connection with restructuring plans.
Information concerning risks, uncertainties and other factors that could
cause results to differ materially from those projected in the
forward-looking statements are contained in the Company's Annual Report
on Form 10-K filed with the U.S. Securities and Exchange Commission on
August 8, 2012, and in the Company’s Quarterly Report on Form 10-Q filed
with the SEC on January 29, 2013, which statements are incorporated into
this press release by reference. These forward-looking statements should
not be relied upon as representing the Company’s views as of any
subsequent date and the Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the
date they were made.

SEAGATE TECHNOLOGY PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

March 29,2013

June 29,2012

ASSETS

Current assets:

Cash and cash equivalents

$

1,433

$

1,707

Short-term investments

476

411

Restricted cash and investments

101

93

Accounts receivable, net

1,562

2,319

Inventories

833

909

Deferred income taxes

111

104

Other current assets

471

767

Total current assets

4,987

6,310

Property, equipment and leasehold improvements, net

2,256

2,284

Goodwill

476

463

Other intangible assets, net

442

506

Deferred income taxes

413

396

Other assets, net

169

147

Total Assets

$

8,743

$

10,106

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

1,698

$

2,286

Accrued employee compensation

264

344

Accrued warranty

184

235

Accrued expenses

451

531

Current portion of long-term debt

4

—

Total current liabilities

2,601

3,396

Long-term accrued warranty

138

128

Long-term accrued income taxes

87

84

Other non-current liabilities

131

138

Long-term debt, less current portion

2,474

2,863

Total Liabilities

5,431

6,609

Equity:

Total Equity

3,312

3,497

Total Liabilities and Equity

$

8,743

$

10,106

The information as of June 29, 2012 was derived from the Company’s
audited Consolidated Balance Sheet as of June 29, 2012.

To supplement the condensed consolidated financial statements presented
in accordance with generally accepted accounting principles (GAAP), the
Company provides non-GAAP measures of net income, diluted net income per
share and gross margin as a percentage of revenue, which are adjusted
from results based on GAAP to exclude certain expenses, gains and
losses. These non-GAAP financial measures are provided to enhance the
user's overall understanding of the Company’s current financial
performance and our prospects for the future. Specifically, the Company
believes non-GAAP results provide useful information to both management
and investors as these non-GAAP results exclude certain expenses, gains
and losses that we believe are not indicative of our core operating
results and because it is consistent with the financial models and
estimates published by financial analysts who follow the Company.

These non-GAAP results are some of the primary measurements management
uses to assess the Company’s performance, allocate resources and plan
for future periods. Reported non-GAAP results should only be considered
as supplemental to results prepared in accordance with GAAP, and not
considered as a substitute for, or superior to, GAAP results. These
non-GAAP measures may differ from the non-GAAP measures reported by
other companies in our industry.

SEAGATE TECHNOLOGY PLC

ADJUSTMENTS TO GAAP NET INCOME AND DILUTED NET INCOME PER SHARE

(In millions, except per share amounts)

(Unaudited)

For the ThreeMonthsEnded

For the NineMonthsEnded

March 29,2013

March 29,2013

GAAP net income

$

416

$

1,490

Non-GAAP adjustments:

Cost of revenue

A

24

63

Product development

B

11

18

Marketing and administrative

C

5

(8

)

Amortization of intangibles

D

20

59

Restructuring and other, net

D

1

2

Other expense, net

E

(13

)

(43

)

Non-GAAP net income

$

464

$

1,581

Diluted net income per share:

GAAP

$

1.13

$

3.86

Non-GAAP

$

1.26

$

4.10

Shares used in diluted net income per share calculation

369

386

A

For the three months ended March 29, 2013, Cost of revenue on a GAAP
basis totaled $2,578 million, while non-GAAP Cost of revenue, which
excludes the net impact of certain adjustments, was $2,554 million.
For the nine months ended March 29, 2013, Cost of revenue on a GAAP
basis totaled $7,926 million, while non-GAAP Cost of revenue, which
excludes the net impact of certain adjustments, was $7,863 million.
The non-GAAP adjustments include amortization of intangibles, other
acquisition related expenses associated with the December 2011
acquisition of Samsung Electronics Co., Ltd's hard disk drive
business (the "Samsung HDD business") and the August 2012
acquisition of LaCie S.A. ("LaCie") as well as the impact of the
2013 voluntary early retirement program (“2013 VERP”) offered by the
Company to certain of its employees in the U.S. in January 2013.

B

For the three and nine months ended March 29, 2013, Product
development expense has been adjusted on a non-GAAP basis to exclude
the net impact of acquisition and integration costs associated with
the Samsung HDD business and costs associated with the 2013 VERP.

C

For the three months ended March 29, 2013, Marketing and
administrative expense has been adjusted on a non-GAAP basis to
exclude acquisition and integration costs associated with LaCie and
costs associated with the 2013 VERP. For the nine months ended March
29, 2013, Marketing and administrative expense has been adjusted on
a non-GAAP basis to exclude the net impact of legal cost
reimbursements, which were partially offset by acquisition and
integration costs associated with the Samsung HDD business and LaCie
and costs associated with the 2013 VERP.

D

For the three and nine months ended March 29, 2013, Amortization of
intangibles related to our Samsung HDD business and LaCie
acquisitions and Restructuring and other, net, primarily related to
prior year restructuring plans, have been excluded on a non-GAAP
basis.

E

For the three and nine months ended March 29, 2013, Other expense
has been adjusted on a non-GAAP basis primarily to exclude the net
impact of a gain recognized upon sales of investments, and a gain
recognized from an insurance reimbursement related to the severe
flooding in Thailand, partially offset by a loss recognized on the
early redemption and repurchase of debt.